The Balance of the $0

question 193

Multiple Choice

The balance of the $0.50 par value Common Stock account for Murdock Company was $60,000 before its recent 3-for-1 stock split.The market price of the stock was $30 per share before the stock split.What likely occurred as a result of the stock split?

• A)The balance in the Retained Earnings account likely decreased.
• B)The balance in the Common Stock account likely declined to $20,000.
• C)The market price of the stock was not likely affected.
• D)The market price of the stock likely dropped to approximately $10 per share.

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